Torex Gold Reports 2014 Net Loss of $26.3 Million

Torex Gold Resources Inc. (TSX:TXG) released its financial results for the 12 months ended December 31, 2014, noting that it incurred a net loss of $26.3 million, down from $67 million in the year-ago period.

Exploration spent on the company’s Media Luna project came to $12.2 million, down from $46.1 million in 2013.

Other financial highlights include:

The Company’s cash position as at December 31, 2014 amounted to $99.4 million, excluding restricted cash of $15.0 million reserved for potential obligations in the event of an unplanned temporary closure of the project pursuant to the Loan Facility. At December 31, 2014, the Company had $773.6 million in assets, and had a working capital balance of $83.9 million, compared with $565.9 million in assets and a working capital balance of $192.7 million as at December 31, 2013.

The first drawdown on the Loan Facility on October 31, 2014, as discussed above, significantly increased the Company’s exposure to U.S. dollars and after assessing its primary economic environment, the functional currency for the Company was changed to U.S. dollars. Prior to November 1, 2014, the functional currency of the Company was the Canadian dollar and the functional currency for all of the other subsidiaries was the Mexican Peso. The functional currency of the Company and its subsidiaries changed on a prospective basis to the U.S. dollar on November 1, 2014 as a result of changes in the Company’s economic circumstances. Specifically, the Company’s debt financing is denominated in U.S. dollars and there is sourcing of U.S. dollar denominated goods and services in the construction of the El Limón Guajes Project. Comparative financial statements for periods prior to November 1, 2014, are presented in U.S. dollars, with the functional currency of the Company being the Canadian dollar and the functional currency for all of the other subsidiaries being the Mexican Peso.

Earlier this week, the company said that a draw of US$50 million on its debt facility has been approved by the lenders.

Click here to read the full Torex Gold Resources Inc. (TSX:TXG) press release.